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9/22/15

Panoro Minerals (PML.v) today gave us a prime example of the morally bankrupt state of the Canadian junior mining industry, viathe NR on its updated PEA as linked here (with the word "updated" defined as "re-jigging the same numbers to try to make it look less worse than it is...and failing"). Thing is, you can update all you want but if you're forced to assume $3/lb copper to get to a 16.7% IRR when the metal sells for 20% less than that on the open market, it's a total waste of time.

Seriously, if I had $1.5Bn to spend on a copper investment and I sincerely believed copper was going back to $3/lb, why the merry hell should I spend it on this project? What you'd do is just buy a whole whack of finished article copper at $2.40/lb and make yourself an easy and clean 25% when it reaches your target price. Finish.

But I digress, this post was started to laugh hard at that snake oil salesman Luquman Shaheen and Panoro (PML.v), Fact is, five years ago Cotabambas was
a small high grade mineralized core surrounded by a weak porphyry halo with a
provincial town sitting on top of the pit zone. Today, Cotabambas is a small high grade mineralized core surrounded by the same
weak halo with the same provincial town sitting on top of the pit zone. And this is what's wrong with the Canadian junior scene. For years and years with umpteen millions of dollars spent, you've had whole
bunch of people working in a company who know, who flat out know and have known for years that
their project will never be a mine. The engineers have known this forever, so have the geols, so have the management and I'd hazard a fair guess that the camp kitchen staff would have heard enough to have worked it out for themselves too. But even though nobody has ever bothered to come clean and admit the obvious, that Cotabambas will never, ever, ever, ever be a mine they've kept ploughing on and lipsticking a pig of titanic proportions all the
same. And the reason: there's a paycheque at the end of every month.

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